Electric spark Co$.,$ uses $60,000$ of component Zima. The cost of placing an order is estimated at $$17\mathrm{.}28$ per order. The annual holding cost is $20\%$ of the purchase price of $$20$ per unit. The following information is provided to you by the management accountant to use in your analysis: The Normal usage $200$ units per day Maximum usage Minimum usage Reorder period $280$ units per day $120$ units per day $20$ to $30$ days Required: $1.$ Determine the EOQ using the equation method $(2$ marks$)2.$ Calculate the total cost of inventory per year, in case the company decided to use the EOQ. $(4$ marks$)3.$ Electric spark has been offered a $2$ per cent discount on the cost if it places orders in quantities of $20,000.$ Discuss whether the company should accept the discount and place larger orders. $(4$ marks$)$